U.S. livestock: Hogs rise on expectations for Chinese buying

Chicago | Reuters — U.S. lean hog futures climbed to their highest price since July on Monday on expectations for Chinese buying, while technical selling pushed down cattle futures.

Meat traders anticipate China will increase pork imports to offset an expected shortage caused by an outbreak of African swine fever, a fatal pig virus that has reduced the Chinese herd by a third in the past year.

U.S. pork producers have already benefited from China’s outbreak. Exports to China and Hong Kong set a record in July, more than tripling from a year earlier, according to the most recent data from the industry group U.S. Meat Export Federation.

ADVERTISEMENT

China has repeatedly imposed retaliatory tariffs on imports of U.S. farm goods since last year as a result of the countries’ trade war. Beijing said on Friday it would exempt American pork from additional tariffs, but it was not clear which duties would be suspended.

Deputy trade negotiators for the U.S. and China are set to meet in Washington starting on Thursday.

In the cattle markets, prices pulled back after jumping last week.

“The markets moved up and got a little overbought,” said Larry Hicks, president of CattleHedging.com.

Cash prices for cattle during the next two to three weeks could average $105-$106/cwt in five major cattle-producing areas tracked by the U.S. Department of Agriculture, Hicks said. That would be up from about $100/cwt last week.

Futures and cash prices fell after an August fire at a Tyson Foods slaughterhouse at Holcomb, Kansas, removed a key buyer from the market.

Sign up now for the FREE Farmtario eNewsletter, your daily Ontario farm and production news delivered to your inbox and you will be automatically entered to WIN a New Holland Compact Tractor PLUS Mower!